As I related in the last blog post in this series, its seems likely we’re going to have inflation rates greater than the Fed’s goal in the near term (say the next couple of years)–if we don’t have some sort of economic collapse. I say the latter because when you have systematic debasement of the […]
Archives
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Letter to WSJ on Modern Monetary Theory
22 Nov 2021
This morning I jotted the following note to James Mackintosh, who authored a weekend article on MMT and my former professor, L. Randall Wray. Mr. Mackintosh Thanks for the article on MMT; as a former student of Randy Wray during the 1990s, I appreciate seeing the consistency of his thought, even though I still see […]
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Transitory: The Fed’s new Dirty Word. A short series on inflation, part 4–Putting it all together.
16 Nov 2021
After months of denying that inflation was a problem (just transitory you see), Joe Biden appears to be finally getting the memo (maybe he’s even reading BATG!?). It was amazing on Sunday seeing some of the Democratic talking head analysts act as if Mr. Biden could just pivot on his message and he could get […]
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I have never really understood my fellow Americans who vote for or against a politician based on their personality. I mean, at some level, you want to vote for someone you’d like to have as your next door neighbor–you don’t have to think too hard to understand why Kamala Harris’s poll numbers are deep underwater. […]
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In part 1 of this series, we looked at a basic macro model of the forces of how supply and demand interact, which can lead to increased price levels. In part 2, we looked at how changes in the money supply can affect the price level. In this blog post, we’re going to think more […]
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I was going to post part 3 of my inflation series, but since no one will read it in the aftermath of the big vote last night, I’ll delay that till tomorrow and instead offer a couple of thoughts on the election. First, the VA results alone are very encouraging, but remember Mr. McAuliffe was […]
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Democrats Prepare to Own the Coming Inflation
25 Oct 2021
Contrary to the motivational speakers, if you want something bad enough, you’ll do bad things to get it, and get bad results. The Democratic Party is preparing to walk over the cliff with their tax and spend bill, and they will have no escape from the inflationary effects to follow. It won’t matter that this […]
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In part 1, I walked us through the basic macro model of aggregate supply and aggregate demand to show that either increased demand or decreased supply, or both, could lead to higher prices. In this post, I want integrate money into the picture, since I agree with Milton Friedman’s famous dictum, “inflation is always and […]
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Inflation as measured by the Consumer Price Index hit 5.4% year-over-year in September, which is over double what the Federal Reserve said is its goal (2%). There are increasing numbers of Fed critics joining your friendly neighborhood Bereans, most humorously by former Treasury Secretary Larry Summers: SYDNEY–Former U.S. Treasury Secretary Larry Summers has sounded alarm […]
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Are you ready for your 401k to be cut in half?
10 Oct 2021
If you can’t stand the thought of your 401k being cut in half, then perhaps you ought not be in the stock market. It’s unfortunate, but the Federal Reserve has engineered asset prices to leave most investors with the Hobbesian choice of greatly overvalued stock and bond markets, or going with the money market opportunities […]
Bert Wheeler
Jeff Haymond
Marc Clauson
Mark Caleb Smith
Tom Mach